So the kinds of volatility changes we are observing as consequences of (large) changes in option holdings may in fact be caused by quite substantially different manager behavior. In addition, we should not overlook the possibility that the movements we observe are caused by a small number of truly titanic business shifts encouraged by option holdings (say, Encyclopaedia Britannica choosing to put a large fraction of it’s resources and corporate health into a bet on ), together with a larger number of firms where the option grants have little or no effect on manager behavior
